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Critical Comparison: Xcel Energy (NYSE:XEL) & COMPANHIA ENERG/S (NYSE:CIG.C)

Defense World ·  Apr 12, 2023 01:42

Xcel Energy (NYSE:XEL – Get Rating) and COMPANHIA ENERG/S (NYSE:CIG.C – Get Rating) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.

Profitability

This table compares Xcel Energy and COMPANHIA ENERG/S's net margins, return on equity and return on assets.

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Net Margins Return on Equity Return on Assets
Xcel Energy N/A N/A N/A
COMPANHIA ENERG/S N/A N/A N/A

Valuation & Earnings

This table compares Xcel Energy and COMPANHIA ENERG/S's gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Xcel Energy $15.31 billion 2.55 $1.74 billion $3.17 22.41
COMPANHIA ENERG/S $34.37 billion N/A N/A $3.12 1.25

Xcel Energy has higher earnings, but lower revenue than COMPANHIA ENERG/S. COMPANHIA ENERG/S is trading at a lower price-to-earnings ratio than Xcel Energy, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

77.2% of Xcel Energy shares are owned by institutional investors. 0.1% of Xcel Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Xcel Energy pays an annual dividend of $2.08 per share and has a dividend yield of 2.9%. COMPANHIA ENERG/S pays an annual dividend of $0.12 per share and has a dividend yield of 3.1%. Xcel Energy pays out 65.6% of its earnings in the form of a dividend. COMPANHIA ENERG/S pays out 3.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Xcel Energy has raised its dividend for 20 consecutive years. COMPANHIA ENERG/S is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current recommendations and price targets for Xcel Energy and COMPANHIA ENERG/S, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xcel Energy 0 0 0 0 N/A
COMPANHIA ENERG/S 0 0 0 0 N/A

Summary

Xcel Energy beats COMPANHIA ENERG/S on 5 of the 8 factors compared between the two stocks.

About Xcel Energy

(Get Rating)

Xcel Energy, Inc. operates as a holding company engaged in the generation, purchase, transmission, distribution, and sale of electricity. It operates through the following three segments: Regulated Electric Utility, Regulated Natural Gas Utility and All Others. The Regulated Electric Utility segment generates, transmits, and distributes electricity primarily in Minnesota, Wisconsin, Michigan, North Dakota, South Dakota, Colorado, Texas, and New Mexico. In addition, this segment includes sales for resale and provides wholesale transmission service to various entities in the United States. It also includes commodity trading operations. The Regulated Natural Gas Utility segment transports, stores, and distributes natural gas primarily in portions of Minnesota, Wisconsin, North Dakota, Michigan, and Colorado. The All Others segment engages in steam, appliance repair services, nonutility real estate activities, processing solid waste into refuse-derived fuel and investments in rental housing projects that qualify for low-income housing tax credits. The company was founded in 1909 and is headquartered in Minneapolis, MN.

About COMPANHIA ENERG/S

(Get Rating)

Companhia Energética de Minas Gerais, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Brazil. As of December 31, 2017, the company operated 117 hydroelectric, thermoelectric, and wind plants with an installed capacity of 5.7 GW; 38 substations and 4,927 km of transmission lines; and 529,873 km of distribution networks and 17,301 km of distribution lines. It is also involved in the natural gas distribution; sale and trading of electricity; energy and technological solutions businesses; provision of telecommunications and data center service activities; and operation of solar energy plants. The company was founded in 1952 and is headquartered in Belo Horizonte, Brazil.

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